1. PRINCIPLES OF MARKETING CBEB 1106 INTERNET MARKETING PRESENTED BY: MOHD MOKHTARUDDIN BAIN CEC080019

2. Internet Marketing: Introduction  It's hard to believe, but just ten short years ago, there were only a handful of entrepreneurs who took the Internet seriously.  Today, putting up a web site, buying traffic and taking orders is so easy that hundreds of thousands of people around the world make all or part of their living from the Internet.  Ten years ago, only a small handful of people did.

3. Internet Marketing: Introduction  The company that made the difference was Netscape. Netscape made using the Internet easy and not just for users, but for people who wanted to use it to publish and sell products and services as well.  Ten years ago on August 9, 1995, Netscape's shares went public and its co- founder, 23 year old Marc Andreessen was suddenly worth $100,000,000. The Internet boom was on.

4. Internet Marketing: Introduction

5. Why the Web Grew so Fast  The key to the Internet's explosive growth in the 1990s was commerce - buying, selling and marketing.  But who invented the concept of the Internet as a marketing medium? Who got that ball rolling?  Before the post-Netscape boom, the Internet was used only for sending e-mail and file sharing. Many business people at the time, including Bill Gates and Steve Jobs, publicly stated that making money on the Internet would be impossible. Some even opposed the idea of opening the Internet to commerce at all.

6. Internet Marketing: Timeline  1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer.  1992: J.H. Snider and Terra Ziporyn publish Future Shop: How New Technologies Will Change the Way We Shop and What We Buy. St. Martin's Press.  1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers pizza ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Netscape 1.0 is introduced in late 1994 with SSL encryption that made transactions secure.  1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.

7. Internet Marketing: Timeline  1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.  1999: Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000. The peer-to- peer filesharing software Napster launches. ATG Stores launches to sell decorative items for the home online.  2000: The dot-com bust.  2002: eBay acquires PayPal for $1.5 billion. Niche retail companies CSN Stores and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal.  2003: Amazon.com posts first yearly profit.  2007: Business.com acquired by R.H. Donnelley for $345 million.  2008: US eCommerce and Online Retail sales projected to reach $204 billion, an increase of 17 percent over 2007

8. Internet Marketing: Definition  Internet marketing, also referred to as i-marketing, web marketing, online marketing, or eMarketing, is the marketing of products or services over the Internet.  The Internet has brought many unique benefits to marketing including lower costs and greater capabilities for the distribution of information and media to a global audience.  The interactive nature of Internet marketing, both in terms of providing instant response and eliciting responses, is a unique quality of the medium.  Internet marketing is sometimes considered to have a broader scope because it not only refers to digital media such as the Internet, e-mail, and wireless media but it also includes management of digital customer data and electronic customer relationship management (ECRM) systems.  Internet marketing ties together creative and technical aspects of the Internet, including design, development, advertising, and sale.

9. Internet Marketing: Business Models  Internet marketing is associated with several business models: i. e-commerce — goods are sold directly to consumers (B2C) or businesses (B2B), ii. publishing — the sale of advertising, iii. lead-based websites — an organization generates value by acquiring sales leads from its website, and iv. affiliate marketing — A process in which a product or service developed by one person is sold by other active seller for a share of profits. The owner of the product normally provide some marketing material (sales letter, affiliate link, tracking facility).

10. Internet Marketing: Companies

11. QUESTION:  What are the advantages and limitations of Internet Marketing?

12. Internet Marketing: Advantages  Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and purchase products and services at their own convenience. Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly.  Internet marketers also have the advantage of measuring statistics easily and inexpensively. Nearly all aspects of an Internet marketing campaign can be traced, measured, and tested. The advertisers can use a variety of methods: pay per impression, pay per click, pay per play, or pay per action. Therefore, marketers can determine which messages or offerings are more appealing to the audience. The results of campaigns can be measured and tracked immediately because online marketing initiatives usually require users to click on an advertisement, visit a website, and perform a targeted action.

13. Internet Marketing: Advantages  The size & space of advertising in Internet Marketing is limitless unlike other mediums such as television & magazines.  Consumers can interact not only with the sellers but also with other users of the product to get different opinions on the product. They can also ask for additional information just in case they are still not satisfied with the initial information given.  Product information on the Internet are current & easily updated compared to using conventional communication channels.  There are no physical or geographical border limitations which means a consumer in Malaysia can search for a product on sale in Norway, South Africa, Brazil, etc. and the person does not even have to travel to the said countries in order to purchase the product

14. Internet Marketing: Limitations  Internet marketing requires customers to use newer technologies rather than traditional media. The problem is not all consumers have easy access to the Internet.  Low-speed Internet connections are another barrier: If companies build large or overly-complicated websites, individuals connected to the Internet via dial-up connections or mobile devices experience significant delays in content delivery. The issue of Internet congestion has also arisen & will become worse in the future due Internet becoming more accessible around the world.  Too much information can also become a problem for consumers trying to purchase a product as they can’t tell whether an information about the product is genuine or false.

15. Internet Marketing: Limitations  From the buyer's perspective, the inability of shoppers to touch, smell, taste or "try on" tangible goods before making an online purchase can be limiting. However, there is an industry standard for e-commerce vendors to reassure customers by having liberal return policies as well as providing in-store pick-up services.  Elements of fraud, criminal breach of trust, misuse of customer’s information, etc. are still prevalent in Internet Marketing today which makes some people feel somewhat skeptical about doing transactions using the Internet as a medium. Information security is very important both to companies and consumers that participate in online business. Many consumers are hesitant to purchase items over the Internet because they do not trust that their personal information will remain private.

16. Q&As

17. THANK YOU